Barber / Cosmetology Permits & Licenses in Paterson, NJ

Limited clients/traffic; no external signage typically allowed

Required for all LLCs. Public Records Filing for New Business Entity fee included.

Mandatory for all employers with employees in New Jersey under the Workers' Compensation Act. Sole proprietors without employees are exempt but may elect coverage. LLC members may be exempt if formally excluded; however, if they hire even one employee, coverage is required for that employee.

General liability insurance is NOT legally mandated by the State of New Jersey for barbers or cosmetology businesses. However, landlords, lenders, or shopping centers may require it as a condition of leasing or financing. Strongly recommended to protect against third-party bodily injury or property damage claims.

Professional liability insurance is NOT mandated by New Jersey law for barbers or cosmetologists. However, it is strongly recommended to cover claims of negligence, allergic reactions, or improper service. Not a legal requirement for licensure or operation.

Only for out-of-state LLCs doing business in NJ.

Must maintain current registered agent with physical NJ address.

Filing requirement to maintain good standing. Fee waived for even-year formations.

Prerequisites: 1,200 hours education at approved school + passing exam (written 70% + practical 75%).

Requires licensed manager on premises; must meet health/safety standards. LLC name on license.

Required if business operates under DBA. Published in legal newspaper for 2 weeks.

Continuous renewal required to maintain exclusive use rights.

Barber and cosmetology services (cuts, shaves, styling) are generally exempt from sales tax in NJ. However, the sale of tangible personal property (e.g., combs, hair care products) is subject to sales tax. A Retail Sales License is required to collect and remit sales tax on such items. See N.J.S.A. 54:32B-2 and NJ Division of Taxation Bulletin S&U-1.

Required for all employers in New Jersey to withhold state income tax from employee wages. Registration is done via NJ-REG online system. Employers must file Form NJ-927 (Quarterly Wage Reporting) and deposit withheld taxes quarterly or monthly based on volume.

All employers in NJ must register with the Division of Employer Accounts. New employers pay UI tax at the standard rate until experience rating applies. Annual report due by February 28 for prior year.

All LLCs in New Jersey must file the NJ-1065 (for pass-through entities) or Form CBT-100B and pay the minimum annual franchise tax of $150, regardless of income. This is not based on profits but is a privilege tax for doing business in NJ. See N.J.S.A. 54:10A-4.

LLCs taxed as partnerships must file Form NJ-1065 and pay the New Jersey Gross Income Tax on business income apportioned to the state. This is in addition to the franchise tax. Individual members report their share on personal NJ-1040 returns.

Some New Jersey municipalities (e.g., Newark, Atlantic City, Jersey City) impose a local business tax or license fee on all businesses operating within city limits. The barber business must contact the local clerk to determine if such a tax applies. For example, Newark charges a $250 annual Business Tax Receipt. See N.J.S.A. 40:51-1.

Required for all LLCs (even single-member with no employees) for banking and tax identification. Applied online via IRS website. Not a tax but a prerequisite for federal and state tax compliance.

Sole proprietors and single-member LLCs report business income on Schedule C (Form 1040). Must pay self-employment tax (Social Security and Medicare) and federal income tax. Even without employees, owners must file annually and may need to make quarterly estimated tax payments.

Businesses collecting sales tax must file Form ST-50 (Sales Tax Return) electronically. Filing frequency is determined by the Division based on sales volume. First return due even if no sales.

A $10,000 surety bond is required for the issuance of a Barber Shop or Cosmetology Salon license in New Jersey. This bond protects consumers against violations of state laws or regulations. The bond must be issued by a surety company licensed in New Jersey. Individual barbers are not required to post a bond unless they are the owner of the business entity applying for the shop license.

Commercial auto insurance is required if a vehicle is used for business purposes in New Jersey. Personal auto policies do not cover business use. Applies to all business structures, including LLCs. Coverage must meet state minimums: $15,000 bodily injury per person, $30,000 per accident, $5,000 property damage.

Product liability insurance is NOT mandated by New Jersey law for barbers or cosmetology businesses. However, if the business sells retail products (e.g., shampoos, conditioners, styling products), it may be held liable for defective or harmful products. While not legally required, it is strongly recommended for risk management.

Liquor liability insurance is NOT required unless the business holds a license to sell alcohol. Most barber and cosmetology businesses do not serve alcohol. If alcohol is served, a license from the NJ ABC is required, and insurers typically require liquor liability coverage as a condition of underwriting. Not applicable to standard barber shops.

While not required for all sole proprietorships, an EIN is mandatory for LLCs with employees or those that choose corporate tax treatment. Even single-member LLCs without employees may need an EIN for state tax or banking purposes. This is a federal requirement administered by the IRS.

A single-member LLC is treated as a disregarded entity and reports income on Schedule C (Form 1040). Multi-member LLCs are treated as partnerships and must file Form 1065. All owners pay self-employment tax on net earnings unless electing corporate taxation. This applies to all LLCs, but barbers must track income from services and tips.

Barbershops must comply with OSHA’s General Duty Clause and specific standards including Hazard Communication (HazCom) Standard (29 CFR 1910.1200) due to use of dyes, disinfectants, and aerosols. Employers must provide safety data sheets (SDS), label hazardous chemicals, and train employees. Bloodborne pathogens standard (29 CFR 1910.1030) applies if there is risk of exposure to blood (e.g., nicks from razors). OSHA does not enforce for self-employed individuals without employees.

All businesses open to the public must comply with Title III of the Americans with Disabilities Act (ADA). Barbershops must ensure physical access (entrances, restrooms, service counters), provide reasonable modifications (e.g., scheduling assistance), and effective communication (e.g., for deaf or blind clients). This includes ensuring accessible paths, seating, and equipment. The ADA applies regardless of business size or number of employees.

Most barbershops are considered Conditionally Exempt Small Quantity Generators (CESQG) if they produce less than 220 lbs of hazardous waste per month. However, they must still identify hazardous waste (e.g., products with EPA-listed codes like D001 for ignitable waste) and dispose through certified hazardous waste handlers. Common regulated items include used developer solutions and certain disinfectants. Not all salon chemicals are regulated, but proper storage and disposal are required.

The FTC Act (Section 5) prohibits deceptive or unfair advertising. Barbershops must ensure all claims (e.g., “organic,” “chemical-free,” “certified master barber”) are truthful and substantiated. Misrepresenting services, prices, or credentials violates federal law. This includes online reviews, social media, and signage. The FTC also enforces against fake reviews and bait-and-switch pricing.

All U.S. employers must complete Form I-9 to verify identity and work authorization for every employee hired after November 6, 1986. Employers must retain I-9 forms for three years after hire or one year after employment ends, whichever is later. This is a federal requirement enforced by ICE under DHS, not DOL, but often grouped with DOL rules.

Employers must file Form NJ-927 quarterly and deposit withheld taxes. Frequency may be monthly for high-volume employers. Electronic filing required.

Required for all commercial spaces; local enforcement authority issues based on Uniform Construction Code inspection

Must verify barber/cosmetology shop permitted in zoning district; contact local zoning board (example: Newark - newarknj.gov)

Required for sanitation compliance in cosmetology/barber shops; enforced locally per N.J.A.C. 8:27

Required under Uniform Fire Code (N.J.A.C. 5:70); local fire official conducts inspection

Required under Uniform Construction Code for salon build-outs

Must comply with local sign ordinance size/illumination restrictions

Many municipalities require alarm registration to reduce false alarms

Barbershops must comply with FLSA minimum wage ($7.25/hour federally, though NJ state law requires higher), overtime (1.5x regular rate for hours over 40/week), and recordkeeping. Tipped employees may be paid $2.13/hour federally if tips bring total to at least $7.25/hour, but New Jersey does not allow tip credit—employers must pay full minimum wage. FLSA applies to businesses with annual revenue over $500,000 or those engaged in interstate commerce (which includes most barbershops using phones, internet, or out-of-state products).

FMLA requires covered employers to provide up to 12 weeks of unpaid, job-protected leave per year for qualifying medical and family reasons. Most barbershops in New Jersey do not meet the 50-employee threshold and are exempt. However, if the business grows or is part of a larger chain, this may apply. State law (NJ Family Leave Act) may impose similar requirements with lower thresholds.

The FDA regulates cosmetics under the Federal Food, Drug, and Cosmetic Act. Barbershops must ensure products are safe, properly labeled, and not adulterated. Hair dyes, shampoos, and styling products are considered cosmetics. Devices like clippers are regulated as medical devices if marketed for medical use, but general grooming tools are exempt. The FDA does not approve cosmetics pre-market but can take action against unsafe or misbranded products. Businesses must not make drug claims (e.g., “treats baldness”) unless approved.

All New Jersey LLCs must file an Annual Report annually. The report updates business information such as principal address, registered agent, and management structure. Filing is required even if no changes occurred.

Barber licenses must be renewed biennially. The renewal cycle is based on the individual’s birth month. Renewal requires completion of 6 hours of continuing education per year (12 hours total over two years).

Effective January 1, 2023, all licensed barbers must complete 12 hours of board-approved continuing education every two years, including at least 2 hours in infection control and safety. Courses must be from approved providers.

Each licensed barber must display their current license in the establishment. The business must also display its Certificate of Registration issued by the Board.

LLCs with employees must use their FEIN to file employment taxes. Even without employees, an FEIN is required if the LLC has multiple members or elects corporate taxation.

Employers must withhold state income tax from employee wages and file quarterly returns. Registration with NJ Division of Taxation via NJ-REG form is required upon hiring first employee.

Barber services are generally exempt from sales tax in NJ, but retail sales of hair care products are taxable. Businesses must register for sales tax permit and file returns accordingly.

Businesses with 11 or more employees must maintain OSHA Form 300 (Log of Work-Related Injuries) and post Form 300A each year. Exempt if under 10 employees or in certain low-risk industries, but barbershops are not automatically exempt.

Required posters include: New Jersey Minimum Wage Notice, Family Leave Act, Anti-Discrimination, Workers’ Compensation, and OSHA Right to Know. Available for free download from NJ DOL website.

All commercial properties, including barber shops, are subject to annual fire safety inspections under the Uniform Fire Code (N.J.A.C. 5:70). Contact local fire department for scheduling.

Barber shops are regulated by local health departments and inspected for sanitation, sterilization, ventilation, and compliance with infection control standards under N.J.A.C. 8:57. Inspections may be unannounced.

All barber shops must register with the Board of Cosmetology and renew annually. Includes inspection of premises and verification of licensed staff.

An LLC with barber services may be taxed as a sole proprietorship (disregarded entity), partnership, or S-corporation. S-corps file Form 1120-S; multi-member LLCs file Form 1065. Due March 15 annually.

LLCs not taxed as sole proprietorships must file Form CBT-100 or CBT-100B. LLCs with less than $250,000 in NJ income may qualify for AET ($150 minimum). Due March 15 for calendar-year entities.

Employers must file quarterly UI tax returns and pay tax on first $37,800 of each employee’s wages (2024 rate: 3.7% for new employers). Registration required via NJ-REG form.

Businesses must retain federal and state tax records, payroll documents, sales tax records, and licensing documents for at least 6 years. Applies to all business structures including LLCs.